The company believes it will normally operate in a range of 4,200 to 6,200 machine hours per month. Prepare a flexible manufacturing overhead budget for the expected range of activity using increments of 1,000 machine hours. (List variable costs before fixed costs.) WILDHORSE, INC. Monthly Flexible Manufacturing Overhead Budget Activity level Machine hours 4,200 5,200 6,200 \fSales inunits Variable expenses Sales commissions Advertising expense Travel expense Free samples given out Total variable Fixed expenses Rent Sales salaries Office salaries Depreciationautos (sales staff) Total fixed Total expenses Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable 10.400 13,000 2,600 Favorable $3,120 $3.380 %260 Unfavorable 936 1,105 169 Unfavorable 45680 5,330 650 Unfavorable 2,080 1.820 260 Favorable 10,816 11,635 81% Unfavorable 1,950 1,950 -0- Neither Favorable nor Unfavorable 1,560 1,560 -0- Neither Favorable nor Unfavorable 1,040 1,040 -0- Neither Favorable nor Unfavorable 650 650 -0- Neither Favorable nor Unfavorable 5.200 5,200 -0- Meither Favorable nor Unfavorable $16,016 $16,835 $819 Unfavorable